Crude oil rises as China pledges to broaden fiscal spending base in 2026

Oil prices climbed higher on the prospects of improved demand from China, and also as US-led talks to end the Ukraine war failed to yield a breakthrough.

Brent increased above $61 a barrel, after declining 2.6% on Friday. Meanwhile, West Texas Intermediate was close to $57.

China has pledged to broaden its fiscal spending base in 2026, as per its Ministry of Finance statement on Saturday, signaling government support in a sustained manner to driven growth.

While the US stepped up a push to end the war in Ukraine, sticking points remain, highlighting the difficulty in ending the conflict. President Donald Trump said he made “a lot of progress” in talks

on Sunday with Ukrainian counterpart Volodymyr Zelenskiy at the Mar-a-Lago resort. The US leader said he aimed to convene another meeting with Zelenskiy and European leaders in January.

Oil is still on track for a fifth monthly drop in December, which would be the longest losing streak in more than two years. Prices have been dragged lower by concerns about a global glut following supply increases from the OPEC+ cartel — which includes Russia — as well as nations outside the group.

China is the top crude importer, and its economy has faced headwinds amid a prolonged property downturn and mounting external pressures, including trade frictions with the US. At the same time, Beijing’s robust stockpiling of crude is expected to continue next year, helping to absorb the surplus.

With inputs from Bloomberg

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